Fairfax Group to sell a 9.72% stake in CSB Bank via block deal
FIH Mauritius Investments is likely to sell a 9.72% stake in CSB Bank on Thursday through block deals to raise about Rs 595 crore. According to the term sheet issued by the banker IIFL, FIH Mauritius is expected to sell 1.68 crore shares in the Kerala-based bank at a floor price of Rs 352.4 per share. The floor price represents a 1% discount to Wednesday’s closing price of Rs 355.95.
FIH held a 49.72% stake in the bank as of March 31, 2024, which will be reduced to 40% post the stake sale. Shares of CSB Bank have declined 15% so far this year compared to the Sensex's gain of 9%.
In December last year, the promoter received approval from the Reserve Bank of India (RBI) to retain a 26% stake in the bank instead of the 15% previously advised by the central bank. Accordingly, FIH Mauritius Investments must reduce its shareholding to 26% within 15 years from the date of the completion of investments, which was in 2018.
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